Vodafone weighing up Cable & Wireless Worldwide bid

Vodafone has said today that it is "evaluating the merits" of a bid for Cable & Wireless Worldwide, whose fixed-line global networks could help satiate the demand for mobile data from its web-hungry customers.

Vodafone, the world's largest mobile phone operator by revenue, said that any offer it makes for the company will be "in cash", but noted that a bid is not assured.

"Vodafone regularly reviews opportunities in the sector and confirms that it is in the very early stages of evaluating the merits of a potential offer for CWW," said the firm in a statement.

"There is no certainty that an offer will be made nor as to the terms on which any offer might be made. Any offer, if made, will be in cash but Vodafone reserves the right to change the specie of consideration. A further announcement will be made in due course, if appropriate."

Under current takeover rules, Vodafone must announce its intention to make an offer for Cable & Wireless Worldwide by no later than 5pm on March 12, 2012.

Customers are increasingly using their smartphones and tablet computers to search the net and access bandwidth-hungry services, such as streamed media. This trend is only expected to grow as adoption of the devices becomes more widespread.

C&W Worldwide, which has issued a string of profit warnings since its split from Cable & Wireless Communications in March 2010, operates fixed line data networks that could be utilised by Vodafone to take the strain off its wireless networks.

The company's stock rocketed by 31% today to a three-month high of 25.8p, while Vodafone shares rose 0.7% to 174p.

The Sunday Times previously reported that Vodafone was considering a £700 million bid for C&W Worldwide, but noted that private equity firm Apax APAX.UL was also interested.

Meanwhile, Vodafone has today announced a deal with Ireland's Cubic Telecom which will allow Cubic's global customers to use voice, text and data while in the UK.

Cubic has reached a Mobile Virtual Network Operator (MVNO) agreement with Vodafone which will cut the UK call charges for its customers, as well give them access to cheaper data packages. Any Cubic customers based in Britain will also benefit from the MVNO deal.